Labor market strength eased during November. Nonfarm payrolls
increased 155,000 (1.7% y/y) after a 237,000 rise during October, revised from
250,000. September's gain was raised to 119,000 from 118,000. The November
increase fell short of expectations for a 200,000 rise in the Action Economics
Forecast Survey. Average hourly earnings increased 0.2% (3.1% y/y) during
November after a 0.1% rise, revised from 0.2%. It left the y/y gain at 3.1%
which remained the strongest since April 2009. A 0.3% rise had been expected.
The unemployment rate held steady at an expected 3.7%. It remains the lowest rate
since December 1969.

From the payroll survey, the 155,000 increase in jobs
was held back by a 5,000 increase (4.0% y/y) in construction which followed
seven months of much stronger gain. Mining & logging jobs fell 3,000 (7.6%
y/y), the first decline in two years. Holding steady was factory sector
employment, which increased by 27,000 (2.3% y/y). Strength has been notable in
several durable goods industries.

The number of jobs in the public sector declined 6,000 (+0.2%
y/y) following a 14,000 fall. State government jobs eased 13,000 (-0.3% y/y).
Hiring increased at the local level by 4,000 (0.4% y/y) and at the federal level
by 3,000, but it was unchanged y/y.

The length of the average workweek eased to 34.4 hours. The
peak for the current expansion occurred in June at 34.6 hours. The mining
logging workweek held steady at 45.8 hours and the factory sector workweek also
was stable at 40.8 hours. The private service-producing workweek held steady at
33.3 hours. It reflected stability in financial activities hours at 37.8 and
stability in professional & business services at 36.1 hours. The length of
the construction sector workweek eased to 38.8 hours.

The 0.2% gain (3.1% y/y) in average hourly earnings reflected
an improved 0.3% rise (2.3% y/y) in the mining & logging sector. It followed
a 0.5% decline. The rise in factory sector earnings improved to 0.3% (1.8% y/y).
The gain in private service sector earnings was steady at 0.2% (3.2% y/y) while
construction sector pay rose an improved 0.2% (3.7% y/y).

From the household employment survey, the unchanged
3.7% unemployment rate reflected a 233,000 increase in employment and a 133,000
rise in the labor force. The total unemployment rate, including the marginally
attached and those working part-time for economic reasons, increased to 7.6%,
its highest level since June. The labor force participation rate held steady at
62.9%, about where it's been since early 2016. The labor force participation
rate for men aged 25-54 years it held at 89.0% and for women of that age, it
eased to 75.6%. The average duration of unemployment fell to 21.7 weeks and
nearly equaled the low for the economic expansion.

The unemployment rate for individuals with less than a high
school diploma fell to 5.6% and for high school graduates but no college, it
declined to 3.5%. For those with some college but no
degree, it rose to 3.1%. For college graduates, the jobless rate increased to 2.2%.

By age group, individuals aged 16-19 were 12.0% unemployed.
The jobless rate for those 20-24 was 6.5%, and those aged
25-54 were 3.1% unemployed. Persons over age 55 were 2.9% unemployed.

The labor market data are contained in Haver's USECON
database. Detailed figures are in the EMPL and LABOR databases.
The expectations figures are in the AS1REPNA database.

The Fed's latest Beige Book covering regional economic
conditions is available here.